Innovation Centre at University of Latvia: structure and

costs calculation

BSRUN Warsaw2011

Facts about University of LatviaFaculties – 13 Institutes – 21Study programmes – 140•Undergraduate 56 (40%)•Graduate – 60 (43%)•Doctoral – 24 (17%)Students – 19 095•Undergraduate 14 339 (75%)•Graduate – 3 903 (20%)•Doctoral – 853 (5%)Staff – 2954•Academic staff – 797 (45%)•Administration – 207 (6%)•Other staff – 1 950 (49%)Budget – 71 173 775 EUR (int.al. 17 772 015 EUR balance at beginning of year)

University of Latvia applied and approved patents 2006.-2010.

Patent cost calculationI. DIRECT COSTS

1. Wages, social insurance allocations2. Travel and accommodation costs3. Materials and supplies4. Services (including patent application costs)

II. DIRECTLY ALLOCATED COSTS

1. Equipment costs (depreciation)2. Facilities / building depreciation costs and premises-related running costs (electricity, rent, supply, water supply and sewerage, heating, waste disposal, taxes, service staff remuneration):

III. INDIRECT COSTS

1. Faculties and institutes administration and support costs (wages, social insurance allocations, supplies, services, equipment, facilities, etc.)2. University central administration and support costs (wages, social insurance allocations, supplies, services, equipment, facilities, etc.)

IV. PROFIT

Patent cost calculation exampleI. DIRECT COSTS         44 783.41

1. Wages         37 008.41

1.1. WagesOne hour rate Ls / h Productive

hours

Proportion of

productive hours

Working hours 29 823.85

x 3 230 x 3 8521.1.1.Head researcher 10 1 050 82% 1 280 12 804.881.1.2.Researcher 8 1 380 82% 1 683 13 463.411.1.3.Laboratory assistant 4 800 90% 889 3 555.56

1.2. State social insurance contributions         7 184.57

2. 2. Travel Unit cost, Ls Amount 2 000.00

2.1.Brazil 1000 2 2 000.00

3. Materials, including: Unit cost, Ls Amount 600.00

3.1.Lab materials 20 5 100.003.2.Computers 500 1 500.00

4.Services and other expenses, including:

Unit cost, Ls Amount 5 175.00

4.1.Telecommunication services 15 5 75.004.2.Technical Maintenance 50 2 100.004.3Intellectual poperty protection 5000 1 5 000.00

Patent cost calculation example (continued)

II. DIRECTLY ALLOCATED COSTS         1 554.67

5. Equipment costs (depreciation) UL inventory numberCosts Ls

per 1 hourWorking

hours437.50

5.1.Measuring instrument 111224 0.25 1750 437.50

5.2.         0.00

6.

Facilities / building depreciation costs and the premises related running costs (electricity, rent, supply, water supply and sewerage, heating, taxes, service staff wages):

Room costs for 1FTE hour, Ls

Working hours 1 117.17

6.1.Kronvalda St. 4, room 312 0.29 3 852 1 117.17

6.2.        

Patent cost calculation example (continued)

III. INDIRECT COSTS         4 926.18

7.

Faculties and institutes administration and support costs (wages, social insurance allocations, supplies, services, equipment, facilities, etc.)

% of overheads Direct costs 2 239.17

Cost driver-1 Ls 5% 44 783 2 239.17

8.

University central administration and support personnel costs (wages, social insurance allocations, supplies, services, equipment, facilities, etc.)

% of overheads Direct costs 2 687.00

Cost driver-1 Ls 6% 44 783 2 687.00

TOTAL (I.+II.+III.)         51 264.26

Profit 5%   2 563.21

Contract Price         53 827.47

VAT 22%   11 842.04

The contract price including VAT 22%         65 669.51

UL Innovation Centre / general information

• Innovation centre of Technology transfer office

• Since 2006th– As part of MoE financed project to make TTO network in Latvia

• Structural unit in Planning and Development department

• 4 employees competent in: innovation management; biology, chemistry, physics; microbiology, pharmacy; IPR management

• The average age of employees 34 years

UL Innovation Centre / functions

−Management of internal environment (IPR management, innovation support services to researchers, internal communication, education to researchers etc.)

−Marketing (to companies)

−Supporting the development of innovative ideas

−Initiating commercialization processes

UL Innovation Centre / the main results

• Date base of Competences - information about 82 groups of researchers – Marketing tool for selling contract research

projects)– we have visited every group of researchers

• 124 potentially commercialable ideas, technologies

• 25 seminars and contact/brokerage events– 3 spin offs have been established

• 23 commercialization proposals

UL Innovation Centre / IPR−Registered IPR

−1 international patent−3 European patent applications−11 Latvian patent applications

− IPR management regulations: elaborated and introduced− IPR belong to University of Latvia−researchers have to inform IC about the potential

IPR− IC evaluates the commercial potential before

granting support to protect IPR−Revenue sharing model - 50:50

UL Innovation Centre revenue / expenses structure

ESF

ERDF

UL budget

Co-financing

IC administration

Conferences and travel

Intellectual poperty protection

Revenue

Expenses

UL Innovation Centre revenue / expenses structure 2006.-2010. EUR

2006 2007 2008 2009 2010

Revenues 76 764 120 944 93 948 99 610 110 843

UL budget - 55 492 12 806 14 229 -

Ministry of Economics 69 003 48 336 - - -

ESF projects 7 761 17 116 - - -

ERDF projects - - 81 142 85 381 110 843

Expenses 76 266 107 484 103 187 91 320 110 771

IC administration 57 769 78 713 83 409 71 699 92 167

Conferences and travel 9 960 9 533 7 826 8 964 5 976

Intellectual poperty protection 8 537 19 237 11 952 10 657 12 628

Challanges

• Weak cooperation between industry and researchers;

• Commercial vs ‘academic’ value of patent;

• Project results (IP) belongs to financer;

• ERDF for non-commercial research projects;

• In time IPR expenses increase and value decrease;

Thank you!